Bitcoin’s Solid Foundations Support a Strong 2022, Bloomberg’s Mike McGlone Predicts
In a recently published research note, Bloomberg’s senior commodity analyst, Mike McGlone, is expecting Bitcoin and Ethereum to do good and build on its strong foundations this year. despite recent price concerns. He wrote:
“Price supports exiting 2021 of about $30,000 for Bitcoin and $2,000 for Ethereum appear solid. At about 80% of the Bloomberg Galaxy Crypto Index, we expect the top two cryptos to remain dominant and continue advancing in 2022.”
McGlone also noted that Bitcoin is right now experiencing a “consolidating bull market” and said that the US Federal Reserve’s policies will serve to be beneficial for the number one cryptocurrency in 2022.
The Fed has recently announced to scale back asset purchases and raise its interest to subdue inflation rates in the country, of which the Bloomberg analyst noted:
“Expectations for Federal Reserve rate hikes in 2022 may support a win-win scenario for Bitcoin vs. the stock market… A reason to take back liquidity is the fact that the S&P 500 is the most extended above its 60-month moving average in over two decades.
Stretched markets have become common, but commodities and Bitcoin appear to be early reversion leaders.
It’s a question of bull-market duration, and we see the benchmark crypto coming out ahead.”
In conclusion, McGlone reiterates on the 2021 “hash-rate reset” following China’s crackdown on crypto, nevertheless leaving Bitcoin with a solid base.
“Having recovered from the 2021 hash-rate crash and price swoon, Bitcoin appears on sound footings at the start of 2022.
At about the same price on Jan. 5 as in February 2021, the benchmark crypto is a consolidating bull market, as we see it, more likely to resume its enduring upward trajectory.
As in 2018, we think the 2021 hash-rate crash solidified Bitcoin’s price foundation.”
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Source: igaming
